CHARLOTTE, N.C., Feb. 23, 2023 /PRNewswire/ -- Nucor Corporation (NYSE: NUE) provided a one-year update today on the status of its new sheet steel mill in West Virginia, including the approval by the Company's Board of Directors to provide additional capital to fund the construction of the project. The new mill will have an annual capacity of 3 million tons per year, and employ as many as 2,000 construction workers during the building phase and approximately 800 full-time teammates when it is fully operational.
"We remain incredibly excited about our Nucor Steel West Virginia mill and its advanced capabilities that will expand our ability to provide our customers with the cleanest and highest-quality steel products, particularly for demanding automotive and construction applications," said Leon Topalian, Chair, President and Chief Executive Officer of Nucor Corporation. "The Midwest and Northeast consume half the sheet steel in the United States. This transformative project will provide customers in these high-demand regions with more sustainable sheet steel, create long-term value for our shareholders and fuel additional growth for Nucor."
Nucor now expects a net cash outlay of approximately $3.1 billion for the West Virginia sheet mill, up from $2.7 billion when the project was first announced in September 2021. The revised $3.1 billion estimate is net of $275 million in cash proceeds received from the State of West Virginia for costs related to the Apple Grove site location. Factors contributing to the increased capital cost include general inflation, the acquisition of additional property and equipment, and expanded port and rail infrastructure requirements.
To date, Nucor Steel West Virginia has received all required state permits and is working to secure federal permits this spring. Construction of the new sheet mill is expected to take 2-3 years once all the necessary permit approvals have been received, and Nucor Steel West Virginia is actively hiring teammates to grow its team in the state.
When operational, the new mill will be the most capable sheet mill in the region with a significantly lower carbon footprint than its competitors. It will be equipped to produce 84-inch sheet products, and among other features, will include a 76-inch tandem cold mill and two galvanizing lines capable of producing advanced high-end automotive and construction grades. Nucor Steel West Virginia will have a freight advantage and unmatched capabilities that will enable the continued expansion of Nucor's high-quality, low-carbon steel product offerings.
"It's been an exciting first year for our team in West Virginia. We cannot thank the state's federal, state and local officials enough for their support and help with this project," said John Farris, Vice President and General Manager of Nucor Steel West Virginia. "We appreciate the warm welcome we have received and working with these officials to recruit the talent we will need to build an amazing Nucor Steel West Virginia team."
Nucor and its affiliates are manufacturers of steel and steel products, with operating facilities in the United States, Canada and Mexico. Products produced include: carbon and alloy steel -- in bars, beams, sheet and plate; hollow structural section tubing; electrical conduit; steel racking; steel piling; steel joists and joist girders; steel deck; fabricated concrete reinforcing steel; cold finished steel; precision castings; steel fasteners; metal building systems; insulated metal panels; overhead doors; steel grating; and wire and wire mesh. Nucor, through The David J. Joseph Company and its affiliates, also brokers ferrous and nonferrous metals, pig iron and hot briquetted iron / direct reduced iron; supplies ferro-alloys; and processes ferrous and nonferrous scrap. Nucor is North America's largest recycler.
Certain statements contained in this news release are "forward-looking statements" that involve risks and uncertainties which we expect will or may occur in the future and may impact our business, financial condition and results of operations. The words "anticipate," "believe," "expect," "intend," "project," "may," "will," "should," "could" and similar expressions are intended to identify those forward-looking statements. These forward-looking statements reflect the Company's best judgment based on current information, and, although we base these statements on circumstances that we believe to be reasonable when made, there can be no assurance that future events will not affect the accuracy of such forward-looking information. As such, the forward-looking statements are not guarantees of future performance, and actual results may vary materially from the projected results and expectations discussed in this news release. Factors that might cause the Company's actual results to differ materially from those anticipated in forward-looking statements include, but are not limited to: (1) competitive pressure on sales and pricing, including pressure from imports and substitute materials; (2) U.S. and foreign trade policies affecting steel imports or exports; (3) the sensitivity of the results of our operations to general market conditions, and in particular, prevailing market steel prices and changes in the supply and cost of raw materials, including pig iron, iron ore and scrap steel; (4) the availability and cost of electricity and natural gas, which could negatively affect our cost of steel production or result in a delay or cancellation of existing or future drilling within our natural gas drilling programs; (5) critical equipment failures and business interruptions; (6) market demand for steel products, which, in the case of many of our products, is driven by the level of nonresidential construction activity in the United States; (7) impairment in the recorded value of inventory, equity investments, fixed assets, goodwill or other long-lived assets; (8) uncertainties and volatility surrounding the global economy, including excess world capacity for steel production, inflation and interest rate changes; (9) fluctuations in currency conversion rates; (10) significant changes in laws or government regulations affecting environmental compliance, including legislation and regulations that result in greater regulation of greenhouse gas emissions that could increase our energy costs, capital expenditures and operating costs or cause one or more of our permits to be revoked or make it more difficult to obtain permit modifications; (11) the cyclical nature of the steel industry; (12) capital investments and their impact on our performance; (13) our safety performance; (14) our ability to integrate businesses we acquire; and (15) the impact of the COVID-19 pandemic, any variants of the virus, and any other similar pandemic or public health situation. These and other factors are discussed in Nucor's regulatory filings with the United States Securities and Exchange Commission, including those in "Item 1A. Risk Factors" of Nucor's Annual Report on Form 10-K for the year ended December 31, 2021. The forward-looking statements contained in this news release speak only as of this date, and Nucor does not assume any obligation to update them, except as may be required by applicable law.
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SOURCE Nucor Corporation
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